Iranian President Mahmoud Ahmadinejad said new US President Barack Obama's fate will be worse than George Bush's if he doesn't bring fundamental changes to American foreign policy.

Iranian President Mahmoud Ahmadinejad

Addressing thousands of people in the central Iranian city of Yazd on Wednesday, Ahmadinejad didn't mention Obama by name but said a "humiliating" fate awaited American leaders if they tried to pursue Bush's policies.

Ahmadinejad on Tuesday said Iran is waiting to see "real changes" in US foreign policy and warned that Tehran-Washington ties won't improve if no fundamental changes were introduced to US policies.

Last week, he said Iran is ready for talks with the US but only if there is mutual respect.

Officials have said that means the US has to stop accusing Iran of supporting terrorism and seeking to build nuclear weapons.

Tehran and Washington severed relations nearly three decades ago after the 1979 Iranian revolution and the takeover of the US Embassy in Tehran by hard-line Iranian students.

But relations deteriorated even further after the September 11, 2001 attacks when former US President George W. Bush declared Iran belonged to an "axis of evil."

Ahmadinejad widened that gap after he was elected in 2005 and defied the US and its allies by pursuing Iran's controversial nuclear programme.

The US believes Iran is secretly trying to pursue nuclear weapons, but Iran has denied this accusation, saying its programme is solely for peaceful purposes such as electricity.

Since his campaign for president, Obama has signalled a willingness for a dialogue with Iran.

At his inauguration last month, Obama said his administration would reach out to Muslims, saying "we will extend a hand if you are willing to unclench your fist."
Obama has pledged to rethink Washington's relations with Tehran.